Carbon Emissions Europe Transcript
European Daily Carbon Markets (EDCM) follows prices in the emissions market in Europe and also global developments in climate finance.
Carbon dioxide emission allowances are traded throughout the EU. This is because EU law caps their emissions under the Emissions Trading System.
Companies in energy-intensive industries in each country are allocated a number of emissions credits. If they use more than their allocation they have a short-fall of credits but they can buy more on the market. If they have a surplus of credits they can sell them.
Companies need to hand in an emissions record annually to show that they are covering their carbon costs to the environment. They can then trade these allowances if they have a surplus or a shortfall.
The prices of emissions allowances change daily and they are often influenced by other energy markets like power and coal. More industries may be included in the European emissions market, in the future.